The Truth Behind Some Common Myths Related To Hiring PEO Services Israel

The use of PEO services has become a preferred option amongst organizations intending to establish their business within Israel. Such service providers make it easier for overseas organizations to not only understand but to comply with the various legal formalities of employing both local and foreign professionals in the new markets. These companies also help the organizations to avoid the expenses and the administrative stress of in complying with the local laws and regulations. However, it is advisable for the organizations looking to hire such professional employment services Israel to first gain a thorough understanding about their working as well as the benefits offered by them.
Image result for Professional Employer Organization 
PEO Services Israel – A Brief Overview

PEO is the abbreviated form of Professional Employment Organization, which in turn is an HR outsourcing service that helps business organizations with the efficient management of various employment related tasks. A PEO essentially exists in the form of a co-employment relationship with the client company. This means that the providers of such services and the client company both share employer responsibility as they both employ the employees. Hiring the services of such companies is preferable over hiring regular recruitment agencies as the PEO’s provide a build in support structure and may even handle various other functions for the clients. Hiring professional PEO service providers in Israel can prove beneficial for business organizations in the following ways.

·         They provide a readymade HR support structure that the client companies can plug into as per their needs and service requirements.

·         They help save valuable time of the HR and management level executives enabling them to focus more on business building activities.

·         They help in minimizing the compliance risks and challenges that the client organizations are likely to face while entering new markets.

·         They handle the diverse tasks related to employment and management of key members of the workforce.

Despite the promise of above mentioned benefits, many overseas organizations feel sceptical about hiring PEO services Israel. This is mainly due to the various myths related to hiring such services. The truth behind these myths is unravelled below to enable business organizations to enjoy the benefits of hiring PEO services.
 Related image

 A PEO Is The Same As A GEO

Most organizations believe that a PEO is same as a GEO (Global Employment Organization) and that the two terms can be used interchangeably. However, there is a significant difference between PEO and GEO, as only a GEO is capable of offering the Employer of Records services to its clients. Moreover, PEO’s cannot function as the sole legal local employer on behalf of the clients and there are limits to the reach of their authority.  

Using PEO Services Will Lead To Reduced Control Over Employees

Business organizations often fear that hiring PEO services will make them have lesser control over their employees. However, they fail to understand that the PEO does not have the authority to either manage the client business or control its employees. Their role within the client organization is purely administrative and they might need to interact with the employees only for collecting personal details and submitting insurance claims. The right of managing the everyday tasks of the employees and managing them on a day-to-day basis always rests with the client organization.
Image result for Professional Employer Organization

 A PEO Insulates The Client Organizations From Non-Compliance

A PEO cannot be held responsible for any non-compliance or liability in lieu of the client company. This is in-fact one of the biggest misconceptions associated with hiring PEO services. The best they can do is offer advice to the client organization about minimizing compliance risks. However, in case the client company fails to adhere to this advice, the PEO cannot be expected to absorb the employment-risks and the legal repercussions resulting from the same.
Location: Israel

Comments

Post a Comment

Popular posts from this blog

The Role Of The Recruitment And Employment Agency

Image
When it comes to finding a job, employment agencies perform a big role. Active agencies will often outsource their employment needs to a particular company that will then take care of things such as shortlisting, interviewing, and reference checking. Staffing agencies can play a big role in helping you discover the right applicants for critical tasks or positions without putting unnecessary stress on your human resources department. The best employment agencies will be able to exceed your objectives by ensuring that no probability steps into your office unless they meet all of your requirements. What Does The Recruitment Agency Do? Recruitment Agencies In Israel are employed by agencies wanting to fill up a particular place within their company. The employment company will then use the details provided by the company to place a commercial on appropriate websites so that job hunters can apply. Once the job has been published and the programs begin coming, it is the j...
Read more

Role And Liabilities Of EOR Service Providers For Making The Right Choice

Image
Managing the expansion of a business into overseas markets can be a complicated task. This is especially true in case of organizations seeking growth opportunities in countries like Israel, where the labour laws tend to be extremely stringent. However, with the growing need to cater to a global audience for better business sustenance, most organizations have no option than to take up this challenge. In this context, partnering with the right company offering the services of employer of record Israel can prove extremely beneficial. This single decision can go a long way in enhancing the business productivity and goodwill besides ensuring that the expansion is carried out in a successful manner. Choosing The Right EOR Service Provider Hiring the right EOR service provider can help business organizations to ensure that they enjoy a positive employer-employee relationship with the members of their workforce. This is because such service providers ensure that the employees ar...
Read more

Key Ideas For Choosing Right Employer Of Records Service Providers In Israel

Image
With the world becoming a smaller place, business organizations are taking up the opportunities to expand into new markets such as Israel. This often requires them to hire remote workers or assign employees to their local corporate units in these markets. However, any times, the business organizations might not feel inclined to invest their time, money and efforts in setting up a branch office or a subsidiary in the foreign markets. Sadly, this does not eliminate them from the responsibility of providing payroll services and ensuring compliance with the various employment and taxation laws. In such cases, hiring professionals offering reliable employment of records and payroll services Israel can provide the best solution. Discussed below are the key pointers that can help overseas organizations to choose the right providers of such services. Understanding The Provisions Of Their Contract The companies providing EOR and payroll services should offer contracts with provision...
Read more